investor relationsri.oi.com.br/oi/web/arquivos/oi_apr_resultados_2q12_eng.pdf · investor relations...
TRANSCRIPT
Investor Relations
Conference Call
August 2012 2Q12
Pro-forma EBITDA performance
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EBITDA and EBITDA margin both registered growth in relation to the previous quarter and to the fourth quarter of 2011
ACCELERATION OF RGU’s INCREASE
STABLE COSTS AND EXPENSES
REVENUE GROWTH
Performance Drivers
72,334 thousand
(+2.1 % vs 1Q12)
R$ 6,909 million
(+1.6 % vs 1Q12)
EBITDA and EBITDA margin growth (R$ million and %)
1,838 2,012 2,141
26.4% 29.6%
31.0%
4Q11 1Q12 2Q12
Fixed Line RGU’s Net Disconnections
(in thousands)
RESIDENTIAL: confirmed reversal of the historical
downward trend for residential RGUs
Continuity of the slowdown of the wireline decline...
... contribute to the consolidation of the
growth path
Fixed Broadband RGU’s Net Additions
(in thousands)
Pay TV RGU’s Net Additions
(in thousands)
Residential RGU’s Net Additions
(in thousands)
...and pay TV growth
acceleration...
...along with the maintenance of the broadband growth
pace... + + =
96
206 231
2Q121Q124Q11
192 201
155
2Q121Q124Q11
187
40
-71
2Q121Q124Q11
91
45
6
2Q121Q124Q11
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Continuing the fast pace post-paid growth...
... as well as focus on higher profitability of the pre-paid
base ...
Sustainable growth of the mobile customer base
Gross recharge vs. pre-paid base
(Base 100)
Total RGUs (in thousands)
Personal mobility: MAINTENANCE post-paid growth and
focus on higher profitability of pre-paid
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Post-paid RGUs and post-paid mix of personal mobility
(in thousands and %)
+ =
80
90
100
110
120
130
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Gross Recharge Pre-paid base
5,791 5,570
5,285
12.8% 12.6%
12.2%
2Q121Q124Q11
45.2 44.1
43.3
2Q121Q124Q11
• Expansion of the IT and Communications (TIC) product portfolio
• Beginning of the execution of the customized plan for São Paulo market
• Redesign of the customer service model
• Rio+20’s sponsor and official IT and telecom service provider
Continuing growth pace
Corporate
• ~4,300 sales consultants specialized on Oi’s entire service portfolio nationwide
• Business telesales: increase in the number of customer service positions
• Quarterly sales increase of 36% for mobile lines and 54% for mobile data
Business Revenue Generating Units (RGU’s) (in thousands)
Business / Corporate: sustained growth pace in the
segment
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2,596 2,385 2,242
526 535 523
5,249 5,192 5,083
8,370 8,112 7,848
2Q121Q124Q11
Mobile Broadband Fixed
Performance was in line with Oi’s long-term strategic plan, returning to revenue growth following the improvement in operating KPI’s.
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Pro-forma net revenue and highlight to the reversal
of the residential historical downward trend
Residential revenues quarterly change (%)
2,466 2,429 2,536
2,070 2,111 2,112
2,229 2,106 2,150
145 155 159
6,909 6,802 6,958
2Q121Q124Q11
Residential SME / Corporate
Personal Mobility Others
1.5%
-4.2%
-2.0% -3.1% -2.8%
-4.2%
2Q121Q124Q113Q112Q111Q11
Pro-forma Net Revenues (R$ Million)
Confirmation of RGU’s growth...
...and higher percentage of households with more than 1P...
Reversing the downward trend
Products per Household (%) Residential Net Revenue
(R$ million)
RESIDENTIAL: CONVERGENCE Leveraging REVENUE
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+ = Total RGUs (in thousands)
49% 51% 52% 48%
1Q12 2Q12
Residential ARPU (R$)
+ 270 bps
+ 2.3 %
1P > 1P 18,037
17,850 17,810
2Q121Q124Q11
64.5 63.1
2Q121Q12
2,466 2,429
2,536
2Q121Q124Q11
Pro-forma costs and expenses
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Operating Costs and Expenses (R$ million)
Operating costs and expenses totaled R$4,769 million in 2Q12, practically flat versus the previous quarter and 3.7% up year on year, below the period’s inflation (4.92%)
4,769 4,789
5,120
2Q121Q124Q11
Net Income – Oi S.A. Consolidated (R$ million)
Net income as the basis for payment of dividends. Oi S.A. now includes all of
shareholders of the group
Following the approval of the corporate
reorganization on February 27th, 2012, the
shareholders of TNL, Coari and TMAR became
shareholders of Oi S.A., as TNL and Coari were
extinguished and TMAR became a wholly-owned
subsidiary of Oi S.A. Therefore, the numbers
presented herein represent Oi S.A. (the remaining
Company and new name of Brasil Telecom S.A.) at the
end of June 2012. However, in order to make for
easier understanding, we are presenting the
consolidated pro-forma results for the first quarter of
2012 and fourth quarter of 2011, equivalent to the
former TNL’s figures, with the exception of Net
Income, as if the mergers had taken place on January
1st, 2011.
Net income
8
64
346
141
2Q121Q124Q11
Pro-forma debt
Gross Debt (R$ million)
4.5
5.0 5.1
4Q11 1Q12 2Q12
The cost of debt stood at 103.5% of the CDI rate in 2Q12, the average maturity was 5.1 years, sustaining the
lengthening trend registered in recent quarters, and the post-hedge foreign currency exposure stood at 1.8%.
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Net Debt (R$ million)
Average Maturity of Debt (in years)
28,497 28,866 25,140
3,240 3,979 4,579
31,737 32,845 29,719
2Q121Q124Q11
Long Term Short Term
23,535
17,472 16,326
2Q121Q124Q11
(76,3%)
(73,7%)
Pro-forma capex R$ million
10
Investments totaled R$1,360 million, up by 24.7% versus 1Q12, in line with the Capex guidance released to the market (R$6 billion in 2012)
862 809
1,626 67 99
136
431 183
370
1,360
1,091
2,132
2Q121Q124Q11
Network IT Services 4G License + Others
CONCLUSION: execution IN LINE WITH THE STRATEGIC PLAN
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... return to the revenue growth path
2Q12: Net Revenue 1Q12: RGU’s
...with consistent improvement among
operational KPI’s and ...
First initiatives of the Strategic Plan...
Pro-forma Net Revenue (R$ million)
Total RGU’s (in thousands)
Pro-forma Costs and Expenses (R$ million)
4Q11: Costs and Expenses
72,334 70,826
69,693
2Q121Q124Q11
6,909 6,802
6,958
2Q121Q124Q11
4,769 4,789
5,120
2Q121Q124Q11
INVESTOR RELATIONS
IR Contacts
Bayard Gontijo
55 21 3131-2972 [email protected]
Marcelo Ferreira
55 21 3131-1314 [email protected]
Cristiano Grangeiro
55 21 3131-1629 [email protected]
Patricia Frajhof
55 21 3131-1315 [email protected]
Matheus Guimarães
55 21 3131-2871 [email protected]
Michelle Costa
55 21 3131-2918 [email protected]
Leonardo Mantuano
55 21 3131-1316 [email protected]
Address: R. Humberto de Campos, 425 – 7º andar Leblon Rio de Janeiro - RJ
Visit our website: www.oi.com.br/ir
Twitter: www.twitter.com/oi_investors
This presentation contains forward-looking
statements. Statements that are not historical
facts, including statements about our beliefs
and expectations, are forward-looking
statements and involve inherent risks and
uncertainties. These statements are based on
current plans, estimates and projections, and
therefore you should not place undue reliance
on them. Forward-looking statements speak
only as of the date they are made, and we
undertake no obligation to update publicly any
of them in light of new information or future
events.
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